14 theSun | TUESDAY MAY 12 2009

business

The drop

BiotechCorp records 18%

growth in investment March industrial in March
2009 was due
to decreases
in the
manufacturing

output down 14.4%

KUALA LUMPUR: Malaysian Biotech-
nology Corporation (BiotechCorp)
has recorded an 18% growth in total
approved investment for its financial
year ended Dec 31, 2008.
The investment in BioNexus com-
panies increased to RM1.3 billion last
year from RM1.1 billion in 2007, said its
chief executive officer Datuk Iskandar
Mizal Mahmood.
BiotechCorp developed 92 BioN-
exus companies at the end of last year,
up 119% from the 42 companies in the
previous year. Of the 92 companies, 47
generated a total revenue of RM378.6
million.
To date, there are 104 companies
with BioNexus status in Malaysia.
Of these companies, about 30%
comprised foreign participation while
the remainder came from domestic-
driven investment, Iskandar Mizal
said.
“BioNexus companies continue
to attract foreign direct investment,
including investors from the United
Kingdom, the United States, France,
Germany, Italy, Belgium, India, China,
Japan, Taiwan and New Zealand,”
he told reporters after releasing
BiotechCorp’s annual report for 2008
yesterday.
Despite the global economic slow-
down, the BioNexus companies have
not held back their initiatives and in-
vestment or undertaken any retrench-
ment so far, Iskandar Mizal said.
“For financial year ending Dec 31,
2009, we are targeting to develop be-
tween 50 and 55 BioNexus companies,
with five of them foreign investors,”
he said.
Iskandar Mizal also said that
BiotechCorp would focus on domestic-
driven investment rather than foreign
direct investment this year due to the
global economic environment.
BiotechCorp, he said, had learnt
from the past that depending on
foreign direct investment was not
practical as during an economic slow-
down, foreign investors would usually
freeze their investment.
According to Iskandar Mizal, local
universities and research institutes
are already strong in science and
technology and the next step is to
commercialise their findings.
Thus, the focus for BiotechCorp this
year is commercialisation, in which
the phase will start in 2011 in form of
technology transfer and licensing, he
said.
“This is to ensure the rights of parties
involved, including the intellectual
properties, are fully protected in
collaborations and partnerships that
seek to commercialise research and
development,” he added.
Iskandar Mizal said it was essential
for BiotechCorp to move forward,
concluding all the initiatives within the
capacity period and moving on to the
commercialisation phase.
To expedite this phase, BiotechCorp
has engaged a domain expert from US
Stanford University for its executive-
in-residence programme to undertake
the initiatives, he said.
In funding the biotechnology busi-
ness, Iskandar Mizal said the funding
spectrum needed to be expand
further.
Among the support programmes
were grants for seed funding, research
and development matching and inter-
national business development, he
said.
Last year, BiotechCorp approved
RM52.2 million for 25 BioNexus com-
panies, up from RM6.25 million for four
companies in 2007. Pending approval
are 15 grant applications amounting to
RM32 million.
As a result of prudent practices,
BiotechCorp managed to save RM11.2
million in operating expenditure with
RM36.2 million spent against budget
of RM47.4 million, Iskandar Mizal
said.
He said BiotechCorp was also
looking to acquire another two tech-
nologies, in the areas of agriculture and
industrial biotechnology, to expedite
development of the local biotech-
nology industry. – Bernama
(19.6%), mining
(3.2%) and
electricity
(8.9%) indices.”
KUALA LUMPUR: The Industrial last year. This, it said, was due to the
Production Index (IPI) for March The February 2009 output went decreases in the indices of crude
2009 declined by 14.4% compared down by 18.5% (revised) as against oil (4.5%) and a marginal increase
to the same month last year, fol- the same month of 2008, it said. of natural gas (0.1%).
lowing a 14.6% (revised) year-on- Compared with the preceding Compared with the preceding
year decline in February 2009. month, the March 2009 output month, the mining output rose by
The drop in March 2009 was increased by 4.1%. 11%.
due to decreases in the manufac- Growth for the first three For the first three months of
turing (19.6%), mining (3.2%) and months of 2009 dropped by 21.6% 2009, the mining sector saw a
electricity (8.9%) indices, said the as compared with the same period drop of 5.4% as compared with the
Statistics Department. of last year, the department said. same period a year ago.
On a monthly basis, the IPI The contraction of the manu- For electricity, the output fell by
was, however, up by 6.2%, the facturing output was due to de- 8.9% in March 2009 as compared
department said in a statement creases in the groups of electrical with a year earlier, the department
yesterday. and electronics products (36.9%); said.
The cumulative index for the wood products, furniture, paper In March 2009, the electricity
first quarter of 2009 was down products and printing (25.1%); output posted an increase of 4.1%
16.3% as against the same period and petroleum, chemical, rubber against the previous month, it
last year, it said. and plastic products (10.4%). said.
According to the department, The mining sector output fell A decrease of 9.1% was re-
the manufacturing output in 3.2% in March 2009 as compared corded in the January-March 2009
March 2009 was lower by 19.6% with the same month last year, the period as compared with the same
compared with the same month department said. period last year. – Bernama
Massa
Azman: Local banks expected
says
title chase
to do reasonably well
over for BANDAR SERI BEGAWAN: Banks in Malaysia “So, we have to see how long the impact
are expected to perform reasonably well this lasts, because that will decide the capability of
him and year and should be able to sustain the same our banking system,” he said.
Ferrari level as last year, AmBank Group chairman Tan Azman said he does not expect the economy
pg 18 Sri Azman Hashim said yesterday. to improve very quickly.
The current economic slowdown also meant “But next year some people are projecting
a slowdown of the banking industry as well but gross domestic product (GDP) growth of 3-4%,
the Malaysian banking system has not been which mean things are moving up,” he said.
affected much by the economic crisis because On liberalisation of the financial sector as
it is fundamentally solid, he said. announced recently by Prime Minister Datuk
“We expect the performance to be sustained Seri Najib Abdul Razak, Azman said: “The first
like in 2008 and I would say that all banks are impact is the more liberalised the sector, the
aiming for that now,” he told reporters after the more competition local banks will have.”
launch of the group’s subsidiary AmCapital (B) He said domestic players have to make sure
Sdn Bhd here. that they built up their resources to compete in
According to Azman, there is positive a more open environment.
sentiment in the market currently and one of On AmBank, Azman said it would continue
the indications was the stock market volume to focus on business in Malaysia as there is still
achieving three billion this week. room for the bank and its partner ANZ Banking
However, he said the banks’ ability to sus- Group to improve operational and product
tain their performance would depend on the offerings.
non-performing loan (NPL) ratio for the rest Regionally, AmBank is looking at the possi-
of this year. bility of expanding Islamic banking in Indonesia
“We are just beginning to feel the impact of and Brunei, he said.
slowdown, with a little bit of unemployment “We are now finalising the deal which will
and export orders coming down,” Azman involve some sort of relationships in the takaful
said. business,” he added. – Bernama

AmBank expands regional

network with Brunei unit
BANDAR SERI BEGAWAN: AmBank Group
yestrday expanded its regional network with
the launch of its subsidiary AmCapital (B) Sdn
Bhd in Brunei which offers funds manage-
ment, Islamic finance and investment advisory
services.
The opening of the branch here marked
AmBank’s latest regional office, expanding its
current operations in Jakarta and Singapore
with the headquarters in Kuala Lumpur, said
AmBank Group chairman Tan Sri Azman
Hashim.
The AmCapital office will enable clients
in Brunei to tap the group’s expertise in the
capital and financial markets, he told reporters
after the launch of the new subsidiary.
The opening ceremony was officiated by
Brunei’s Finance Minister II, Pehin Orang Kaya
Laila Setia Datuk Seri Setia Awang Abdul Rah-
man Ibrahim.
Azman said the group’s entry into Brunei
is timely as the country’s financial market
has maintained a steady momentum, while
external market participants are setting up
operations or expanding their franchises here.
According to him, Brunei is also a good
market for more syariah-compliant products,
especially in the areas of wealth management
or private equity investments.
“It is also well recognised that Islamic
products offer excellent potential, therefore
adding depth and breadth to the banking
infrastructure,” he said.
Azman said the Brunei government issued
B$165 million (RM396 million) worth of Islamic
leasing bonds in the sukuk market in March
this year, bringing the total short-term ijarah or
rental bonds sold by the government to B$1.5
billion (RM3.6 billion) since its first offering in
2006.
He said that AmCapital Brunei will be
closely aligned to the Brunei Financial Centre,
which was established to develop the country
as a major financial hub that promotes interna-
tional banking, Islamic banking, mutual funds
and asset management.
AmCapital Brunei was incorporated in
Brunei on Nov 27, 2007, as a local business
company and received its licence in Septem-
ber last year. – Bernama